I would simply store all the messages you receive in an array:
var messages:Array = [];
function onReceiveMsg(userName:String, msg:String):void
{
messages.push({ userName: userName, msg: msg });
displayMessages(); // See below.
}
And pull the last 0-100 items from that for display:
function displayMessages():void
{
myTextArea.htmlText = "";
var recent:Array = messages.slice(-100);
for each(var i:Object in recent)
{
myTextArea.htmlText += "<font color='#FF0000'>" + i.userName + ": " + i.msg + "</font>";
}
}